With as high as gold prices got in 2012, most experts say that it could have gone higher. In this post we’ll cover a more in depth look at the gold market and what the experts are projecting will happen to the price of gold in 2013. Most people don’t realize everything that plays a role in Gold prices going up and down on a daily basis, but as we’ll cover in this post, it truly is a global market. If you’re more interested in just selling scrap gold for some extra money, the nice thing is you don’t have to worry about any of this, all you need to do is take your scrap gold or other precious metals into your local Check City location to get top dollar.
Will The Price of Gold Continue to Rise in 2013?
With all of the financial uncertainties in the world today, gold has been a constant that investors have been able to turn to in the past couple years. But with the price of gold not going over $2000.00 like most people thought it would in 2012, most people are wondering how much growth the gold market has left for 2013.
Whenever you discuss gold it’s important to keep in mind that gold is a global market. While most people think that the western nations are what drive the price of gold, emerging markets play a huge role in the price of gold, for example China and India actually make up 50% of the market.
On that note, specialists are saying that 2012 was a very good year to illustrate why gold is a very global market. There are multiple factors that influence gold prices so if you look at 2012 on the one hand you have emerging markets, central banks purchasing in a very strong way you also have inflows into gold backed ETF’s as investors were positions for quantity.
In India, 2012 was a softer year in terms of demand, never the less, Indians spent more money in rupee terms in 2012 than they did in 2011. In China the demand was more or less flat in terms of volume however again in money terms it was actually higher this basically means that the overall dynamics in the gold market still seem to be very healthy.
In Regards to Inflation Risk
With the election out of the way and people trying to get focused on the next few years, the economy in the west is looking slightly better, especially in the US. Specialists say that while it’s not as bad as it was a couple years ago there are still structural issues that are adding to economic issues, that is especially true in Europe and Japan and so on. We haven’t seen direct signs right now but that’s not to say that all of the monetary policies and aggressive monetary policies that have happened are not going to be able to turn around.
In regards to the economy driving the value of gold some people have said that the dollar is still the best house in the neighborhood and that it still hasn’t collapsed so nothing is wrong and that gold hasn’t gone anywhere in the last year and a half. On that note, gold was up 6% on average in 2012, which isn’t great considering that every single pundit said it was going to be above $2000 in 2012. Based on every central bank in the world printing more money it should have been a slam dunk to get above $2000 but the charts definitely tells a different story as gold went straight down and is in the low $1600.00’s.
Many people want to know if gold will even make it above $1800.00 this year and the thing to keep in mind is that supply and demand is really what drives the value of gold. A lot of people think that the whole value of gold is depending on people investing their money in the west but that’s only part of the story because it relies so heavily on what is happening in India and China and if you only concentrate on what happens in the west it can be difficult.
Regardless of what all the experts say, if you’re looking to sell some of your scrap gold and get some extra money to pay the bills, make some home improvements or take a family vacation Check City is always there to offer top dollar for your scrap gold and other precious metals.